Court orders PFA to immediately pay former MD his Entitlement
Hon. Justice Salisu Danjidda of the Lagos Judicial Division of the National Industrial Court has declared the detention of Mr Adebayo Adesina’s accrued salaries for the months of November and December 2018 and two weeks leave encashment by the Veritas Glanvills Pension as wrongful.
The Court ordered Veritas Glanvills Pension to immediately pay Mr Adebayo the sum of N6,895,740.00 (Six Million, Eight Hundred and Ninety-Five Thousand, Seven Hundred and Forty Naira) as Salaries for November and December 2018 and N1,705,260.00 (One Million, Seven Hundred and Five Thousand, Two Hundred and Sixty Naira) Outstanding Two Weeks Leave encashment and ₦200,000 cost of action.
However, the court declined to grant Mr Adebayo’s claims for severance package, constructive dismissal and damages for lacking merit.
From facts, the claimant- Mr Adebayo Adesina had averred that his resignation from the employment of the Veritas Glanvills Pension was borne out of the deliberate attempt by the Defendant’s Board to frustrate and force him out of office as the Managing Director of the company.
He stated that his resignation was accepted by the Pension firm with immediate effect on the 8th day of November 2018 as against the 31st of December 2018 as stated in his letter of resignation, and is entitled to salaries for the months of November and December 2018 including other entitlements.
In defense, the defendant- Veritas Glanvills Pension denied any form of intimidation and submitted that Mr Adebayo’s resignation letter was done in breach of the contract of employment because it falls short of the length of notice that is required for the successful termination of the employment of contract between the parties, that Mr Adebayo shall be directed to pay the Defendant three months’ salary in lieu of notice.
The company further averred that Mr Adebayo would only be entitled to annual leave after 12 months of continuous services with the Defendant but he only served from 15/1/2018 to 24/10/2018 and urged the court to dismiss the case and grant the counterclaim sought.
In opposition, Adebayo’s Counsel submitted that following the service of his client’s resignation letter, the Defendant vide Exhibit C22 accepted the resignation of Mr Adebayo and asked that same take immediate effect thereby asking the Claimant not to work till the 31st day of December 2018, and the surrounding circumstances irresistibly point to the fact that Mr Adebayo’s `resignation wasn’t voluntary but rather constrained to resign in light of the things he was passing through in the hands of the firm.
In reply, Counsel to the Veritas Glanvills Pension contended that the doctrine of waiver does not apply to the facts and circumstances of this case, and urged the court to discountenance the submission of Mr. Adebayo’s counsel.
Delivering judgment after careful evaluation of the submissions of both parties, the presiding Judge, Hon. Justice Salisu Danjidda held that the court is not persuaded that Mr Adebayo resigned his appointment because of the Veritas Glanvills Pension’s behaviour and held that Mr Adebayo having put in his resignation to take effect on 1/1/2019, is entitled to his salary of November and December 2018 as he had chosen to stay with the firm up to the 31/12/2018 and there is absolute power to resign and the firm’s acceptance of the resignation becomes inconsequential.
The Court has declared the detention of Mr Adebayo Adesina’s accrued salaries for the months of November and December 2018 and two weeks leave encashment by the defendant as wrongful.
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